India's gold demand up by 37% in Q2 of 2017: World Gold Council

Demand for gold in India for the second quarter (April-June) of 2017-18 was at 167.4 tonnes, up by 37 per cent compared to overall Q2 demand of 122.1 tonnes for 2016, World Gold Council data showed here on Thursday.

"India's gold demand in Q2 2017 stood at 167.4 tonnes, a robust quarter, as seasonal demand and improved rural sentiment contributed to a 37 per cent year-on-year increase. Both jewellery and investment demand saw a healthy rise of 41 per cent and 26 per cent respectively, albeit on a low base of Q2 2016," said Somasundaram PR, Managing Director, India, World Gold Council.

The gold demand value for the second quarter of 2017 was at Rs 43,600 crore, up by 32 per cent in comparison to Q2 2016 (Rs 33,090 crore).

The total Jewellery demand in India for Q2 2017 was up by 41 per cent at 126.7 tonnes as compared to Q2 2016 (89.8 tonne). The value of jewellery demand was Rs 33,000 crore, up by 36 per cent from Q2 2016 (Rs. 24,350 crore).

"Though underlying concerns about GST and other transparency measures continue, predictably, positive sentiment returned with continued remonetisation and an expectation of good monsoons. This was evident in the sales momentum during Akshaya Tritiya supported by a relatively higher number of auspicious wedding days during the quarter," said Somasundaram.

"Looking ahead, in second half of year, as consumers and trade adapt to the new tax and compliance regime, growth will remain range bound even with good monsoons. Our full year demand estimate remains between 650 and 750 tonnes, the higher end of the range being more likely," he added.